Boeing Holds In Buy Zone, Leads 5 Stocks To Watch In Short Trading Week

Boeing leads this week’s list of stocks to watch as the Dow Jones aerospace manufacturer trades near a buy point. Viking Holdings (VIK) continues to hold in a buy zone. Construction Partners (ROAD) hovers near an entry while TJX (TJX) and Axsome Therapeutics (AXSM) round out their respective patterns.

Viking is on the IBD Leaderboard list, while Axsome ranks on the IBD 50 list of top growth stocks.

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Meanwhile, the Dow Jones Industrial Average and major stock indexes were mixed Friday, following a cooler-than-expected January consumer price index inflation report. IBD has reduced its stock market exposure recommendation to 40% to 60% invested as the S&P 500 has fallen below its 50-day moving average.

The markets will be closed on Monday, Feb. 16, for the Presidents Day holiday. With the shortened trading week and mixed signals from the market, investors should update their watchlists while maintaining some caution. Other watchlists to keep tabs on include the IBD SwingTrader and IBD Sector Leaders.


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Boeing

Boeing (BA) stock is trading just above a 242.69 buy point for a long base stretching back to early August. The Dow Jones aircraft manufacturer has been on a steady recovery over the past year after being plagued with a string of delivery delays and supply chain troubles stemming from its quality control issues and worker strikes.

Shares initially broke out on Jan. 13 and peaked at 254.14, before retreating out of the buy zone to fall below their 21-day exponential moving average.

BA stock earlier this month recovered above that moving average and has since swung in and out of the bottom of the buy zone.

The buy zone, which stretches 5% beyond the buy point, extends to 254.82.

Boeing stock has a 92 Composite Rating, according to the IBD Stock Checkup. The Composite Rating combines various technical indicators into one easy-to-read score. However, the stock’s EPS Rating and RS Rating are below IBD recommendations.

BA shares have advanced nearly 12% so far this year.

Meanwhile, aerospace and defense stocks have broadly climbed over the past two weeks. U.S. defense spending rose 1% in January, William Blair reported in a Wednesday research note citing U.S. Treasury data, following a 3% decline in December. However, growth slowed from January last year, which saw defense spending increase 12.5%.

Elsewhere, the U.S. Air Force on Monday awarded Boeing a contract to modernize the flight deck for the C-17A fleet, though financial details were not disclosed.

Boeing and rival Airbus (EADSY) are also reportedly in talks with Saudi Arabia’s flagship airline, Saudia, for a deal to buy at least 150 narrow-body and wide-body jets. India is also preparing to place $80 billion worth of orders with Boeing as part of a free-trade agreement with the U.S.

The contract and deals come after Boeing cleared estimates for its Q4 results at the end of January, thanks to ballooning commercial airplane orders and surging defense demand.


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Construction Partners

Dothan, Ala.-based Construction Partners has been on a sharp uptrend since its Feb. 5 earnings beat-and-raise report. The civil infrastructure firm reported a 44% spike in revenue amid the buildout of data centers and AI infrastructure and manufacturer reshoring.

Construction Partners’ backlog swelled to a record $3.09 billion and it has 1,000 projects on its 2026 schedule in the commercial sector alone. The company expects 10% to 15% growth in public contracts from Sunbelt states, where it predominantly operates.

Part of that growth comes from Construction Partners’ expand-through-acquisition strategy. The company has completed eight acquisitions in less than 15 months, and CEO Fred Smith on the earnings call said he sees a “very robust pipeline” of additional opportunities.

That growth helped give Construction Partners the confidence to lift its 2026 revenue forecast to $3.48 billion to $3.56 billion, from $3.4 billion to $3.5 billion in revenue.

ROAD stock flirted with a 138.90 entry for a cup base late last week

Shares are trading nearly 18% above their 50-day line after rallying on the Feb. 5 earnings results. Investors may want to wait for a pause to let the moving averages catch up somewhat.

Construction Partners was Thursday’s IBD Stock of The Day and leads the Building-Heavy Construction Group, according to the IBD Stock Checkup. ROAD has both a perfect 99 Composite Rating and EPS Rating. Its relative strength line is near year-highs with an 89 RS Rating.

ROAD stock has advanced more than 23% so far this year.


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TJX

TJX, the parent company of TJ Maxx, Marshall’s and HomeGoods, has forged a base ahead of its Feb. 25 earnings report. However, the retail-apparel/shoes industry group tracked by IBD skidded this week after the Census Bureau on Tuesday reported flat retail sales for December.

Clothing and accessories store sales declined 0.7% from November, but were still up 5.1% from last year.

Meanwhile, TJX is coming off its Q3 beat-and-raise report from November, which saw earnings increase 12% on 7% revenue growth.

FactSet expects Q4 earnings to increase 13% on 6% revenue growth. Analysts will be watching TJX’s same-store sales growth, which is expected to slow year over year for the first time in four quarters.

Currently, TJX expects full-year comparable sales to increase 4%. The retailer sees full-year earnings increasing about 9% to range from $4.63 to $4.66 per share.

TJX stock on Friday formed a flat base with a 159.48 buy point as shares edged above their 50-day line. Investors could use Tuesday’s high of 157.16 as an early entry opportunity.

The 159.48 buy point matches TJX’s record high from Jan. 9.

TJX stock ranks third in the Retail-Apparel/Shoes/Accessories group, which is led by Boot Barn (BOOT). The stock’s relative strength line has moved sideways since November. But TJX maintains a solid 87 Composite Rating and a muscular 88 EPS Rating.

Axsome Therapeutics

Axsome Therapeutics was Friday’s IBD Stock Of The Day as analysts see a multi-billion-dollar treatment opportunity for the biotech company.

New York-based Axsome develops treatments for central nervous system (CNS) conditions, including depression, Alzheimer’s disease agitation, migraines, narcolepsy and fibromyalgia.

Its drug Auvelity is the only approved drug to treat major depressive disorder and brought in $507.1 million in sales last year, according to the company’s preannounced Q4 results. The Food and Drug Administration in December granted Auvelity a priority review to treat Alzheimer’s disease agitation, which William Blair analyst Myles Minter said has $2 billion-plus potential.

AXSM stock on Friday extended its three-weeks-tight pattern to four weeks. The pattern has a 191.50 buy point, according to MarketSurge charts, matching its Jan. 22 record high.

Axome stock has pulled back slightly from its highs but is trading about 8% above its 50-day line, finding support recently at its 21-day line.

AXSM shares have an 80 Composite Rating and a 92 RS Rating amid their runup stretching to September.

However, the company’s string of quarterly losses land it a lowly 34 EPS Rating. But Axsome is expected to turn a profit in the second-half of 2026.

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Viking Holdings

River cruise operator Viking Holdings is holding in a buy zone, above a 74.61 buy point for a flat base. Shares broke out on Jan. 30, as Royal Caribbean’s (RCL) Q4 beat and guidance lifted cruise stocks.

Royal Caribbean announced that two-thirds of its 2026 capacity is already booked, which bodes well for the rest of the industry. Viking during its Q3 results in December said that 70% of capacity for its core products have already been sold.

Although Viking hasn’t released a date for its Q4 report yet, FactSet expects earnings to increase 22% on 20% revenue growth.

VIK stock on Friday held support at its two-day moving average.

VIK stock ranks second in the Leisure-Services Group according to the IBD Stock Checkup and has a solid 83 Composite Rating. The stock’s relative strength line is near 52-week highs with an 89 RS Rating. The EPS Rating is a so-so 59, reflecting losses back in 2023.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison.

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